Non-fungible tokens (or NFTs for short) have forever changed the art world. 2021 has been exceptional for NFTs.
Recent statistics have placed NFTs at a market capitalization of $43.08 billion as of October 2021. It is a 100x increase from last year. We expect things to increase as the world sees the NFT space as an industry to reckon.
An increased interest in cryptocurrencies and their allied technologies provides this opportunity. NFTs present a simple use case for newbie users and investors. It is different from the other sectors of the cryptocurrency space.
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What are NFTs?
NFTs are unrepeatable data forms stored on ledgers like blockchains. We cannot exchange them with other data forms. It is what makes this form of cryptocurrency tokens to be in high demand.
The uses of NFTs are many. The primary use case of NFTs comes from the art world. Before now, artists didn't have a digital method of representing their art.
These days, NFTs provide this value for artists and lovers of art. It is easier to own the digital data form of the Mona Lisa, Rembrandt's Night Watch, for instance, than to have and secure the physical copy. Artists recognize this and take advantage of using NFT marketplaces.
It has created a new industry where digital art is now a recognized niche in its own right and is no longer on the sidelines of the art world.
NFTs Have Created a New Art Industry
Today, artists with access to NFT marketplaces can now earn substantially from their passion (art). Before the advent of NFTs and their unique signatures, this was not possible before.
NFT marketplaces have sprung up all over the globe to cater to new and emerging artists who are taking the world by storm. Older established artists aren't left out. NFT marketplaces provide new opportunities for all kinds of art.
From the GIF collectibles we have seen to print, video and even audio tokens, NFTs have proven to be one of the best ways of art monetization. The issue isn't the existence of NFT marketplaces.
The right marketplace that caters to the various issues artists have is prime. Already, NFT features are proof that the NFT art form isn't a flash in the pan. NFT art forms have long-term value because of the underlying technologies that drive them.
NFT Features in Current Marketplaces
Many features exist in current NFT marketplaces. Most of these features are generic and cut across the marketplaces that have dominated the space.
They include easy minting, low-cost and gas-free transactions, NFT tokens security, allowance of different file types (including video and audio), access to several blockchains, and so on.
It has left much to be desired, as the first-generation NFT marketplaces require quite a bit of technical know-how. Issues such as NFT project crowdfunding, royalties and community NFTs aren't on these first-generation NFT platforms like OpenSea and others.
New NFT marketplaces like ENVOY have taken into cognizance these issues and have solved these problems via an easy-to-use interface. Copyright issues and investor safety have also arisen, and it presents additional concerns for artists and investors alike.
What to Look for in the Ideal NFT Marketplace
Many NFT marketplaces are looking to solve the many issues that pervade the NFT space. However, second-generation marketplaces have a first-mover advantage in providing solutions.
The first thing artists look for in an NFT marketplace is the presence of community. Second-generation marketplaces have understood this. New marketplaces pay particular attention to this sense of community. Their teams create platforms for artist engagement with fans.
Another feature that artists look forward to in the right marketplace is the issue of royalties from art sales. Marketplaces like Envoy have enforced royalties from art sales so that the artist gets to make passive income.
As per the copyrights, the legal teams of these new marketplaces always do an intellectual property check to ensure the authenticity of art to avoid legal issues. It has created a safe space for both the artists and the investors.
ENVOY’s Staking activities provide another form of earning income for community members. Through staking its $ENVOY native tokens, community members receive incentives that unlock vaults or other mechanisms. These vaults or mechanisms contain some of the rarest NFTs out there.
Allowing access to different network channels is another feature that enables native NFT distribution across the NFT space. Second-generation NFT marketplaces have understood this concept of collaboration and have created avenues for this.
The ability of different art industries to onboard NFT projects provides further utility for NFTs.
Next-generation NFT platforms have created avenues for this and more.
They range from digital art to video, music and even Hollywood movies. There also exists the option for artists to crowdfund their projects.
A-listers in different art industries aren't left out. New NFT marketplaces like ENVOY create partnerships with these celebrity artists. So they can enter the wonderful world of NFTs and make profits, too.
Investors always look at the security of their NFTs and other issues as well. Second-generation marketplaces provide more than adequate security features for NFTs. The platform also verifies NFT auction listings. The platform has also added several layers of security beyond the blockchain to enable the NFTs to remain out of the hands of hackers and other bad guys.
NFT storage is yet another concern that these marketplaces solve. Investors and NFT buyers have affordable and secure storage options within such ecosystems.
With an easy NFT storage purchase and an executive team that continues to think outside the box, second-generation marketplaces have proven to be the marketplaces that will be in the space for the long haul.
As the NFT marketplaces continue to evolve, we shall see further uses of NFTs. NFTs are one part of the cryptocurrency space that will change our lives forever in more ways than can be thought of at the moment.
They are also another core driver of the growth and adoption of cryptocurrencies and their allied technologies. NFT art forms provide a window into what the future can be. Anyone who plugs in can pursue passion and profit!